» Corporate Governance Risk Assessment with Governance Rating System

The Corporate Library's TCL Ratings are a key aspect of the Board Analyst® service, relied on heavily by investment analysts examining investment risk, insurance underwriters and other decision-makers. Our proprietary dynamic indicators go beyond conventional benchmarks of good corporate governance, and often reveal a very different picture of specific boards. Our focus is on real-world value and risk, not just 'check-the-box' best practices. Our unique quantitative ratings formula identifies and highlights certain key 'red flag' indicators of board ineffectiveness and is combined with additional in-depth analysis by our senior analysts and associates.

Investment Risk Indicators

We have identified a small number of proven dynamic indicators of special interest to shareholders and other stakeholders in an effort to determine which boards are most likely to enhance and preserve shareholder value, and which boards actually increase risk. How we arrive at our ratings makes them powerful intelligence tools:

• They are not based on compliance with best practices checklists, but statistically proven indicators of board weakness.
• They are based primarily on quantitative screens. Board Analyst experts collect and examine more than 1,100 individual data points. Any overall rating lower than a C or any individual component with "High Concern" or "Very High Concern" is clearly highlighted and explained in each company's profile.
• Our governance risk ratings focus on board actions versus board policies and structures (with the exception of our board component, which does test for certain structural combinations).Download our essay on board risk here.
  
• Our governance risk ratings screen on indicators of actual board behavior and decision-making. For more information our proprietary methodology, click here or visit our FAQs.
• TCL Ratings are fully independent. The Corporate Library does not provide consulting services to the companies we rate. We do, however, offer every company rated by The Corporate Library complimentary access to its own ratings report.

Click here to download a printable one-page overview of TCL Ratings. TCL Ratings are available in combination with the Board Analyst platform. You can also purchase company governance profiles individually in our online store.